Indian regulator allows compensation for Tata Power's Mundra plant
MUMBAI Feb 23 (Reuters) - The Indian electricity regulator allowed Tata Power to raise tariffs and receive compensation to make up for losses incurred at its flagship Mundra plant in the western state of Gujarat.
The Central Electricity Regulatory Commission said Tata Power should be reimbursed 3.3 billion rupees ($52 million) for the fiscal year 2013, that ended in March.
It can also raise tariffs by 0.524 rupees per unit for the current fiscal year for electricity generated from Mundra, the regulator said in an order dated Feb. 21.
India's power sector has struggled with domestic coal shortages and has become increasingly reliant on costlier imports to meet the country's rapidly growing energy needs.
"The company finds the order balanced perhaps keeping in view the beneficiaries and consumer interests," Tata Power said in a statement.
(Reporting by Aradhana Aravindan; Editing by Robert Birsel)